From Digital Transformation to Operational Responsiveness: A Structural Equation Model of Turnaround-Time Efficiency among North Central Nigerian Small and Medium-Sized Enterprises

Abstract

Abstract: This study investigates the effect of digital transformation capabilities on operational responsiveness among small and medium-sized enterprises (SMEs) in North-Central Nigeria, using Structural Equation Modelling (SEM). Anchored on a multidimensional perspective, the study examines how data analytics capability, process automation, and employee digital literacy influence the speed of core business processes. A quantitative research design was adopted, with data collected from 373 SME owners and managers across the region. The hypothesized relationships were analyzed using structural equation modeling (SEM). Findings reveal that digital transformation has a significant negative effect on turnaround time, indicating that stronger digital capabilities enhance process speed and operational responsiveness. Process automation and employee digital literacy produced the strongest effects, underscoring their importance in minimizing operational delays. Data analytics capability also significantly improved turnaround efficiency, although with a relatively moderate effect. The study contributes to digital transformation and SME operations literature and offers practical insights for improving competitiveness in emerging economies.